The UK firm spent the cash on Network Appliance (NetApp) products including what it claims is the world's largest NetCache Web cache server installation, saying the hardware will offer more resiliency and speed.

"Because the most popular Web sites can now be stored locally within Demon servers, we can now provide faster downloads as well as consistent high speed access to the busy sites," said Phil Male, Demon Internet technical director. "It is vital that the Internet industry recognises that reliability and resilience are on an equal footing with fast connection speeds when it comes to customer satisfaction."

Five-year-old Demon currently has about 165,000 customers making it Europe's largest indigenous ISP.

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